NAD recommended that a T-Mobile ad claiming 20% savings against AT&T and Verizon be discontinued or modified
In another case that was instigated by a Fast-Track SWIFT complaint filed by AT&T, the NAD determined that the claim made by T-Mobile in a pair of 30-second ads was misleading. In the commercials, T-Mobile said, “save on every plan vs. the other big guys” which most consumers would take to mean that the price at T-Mobile for a cell phone plan and the same number of lines will cost less than what you would pay for the same thing at AT&T or Verizon.
Once again, T-Mobile failed to provide an accurate comparison by including the cost of streaming services that are bundled with a T-Mobile plan on top of the cost of AT&T and Verizon‘s monthly plans. The NAD report stated that customers are unlikely to understand that the savings quoted in the commercial by T-Mobile include the value of streaming services bundled with T-Mobile‘s wireless service.
NAD says T-Mobile’s claim is unsupported since in some cases its plans are more expensive than Verizon and AT&T
The big point made by NAD is that T-Mobile‘s claim was unsupported “because in some cases the price of T-Mobile’s plan, when not considering streaming services, is more expensive than comparable plans at AT&T and Verizon.” As a result, NAD recommends that T-Mobile discontinue its “save on every plan vs. the other big guys” claim. Once again, T-Mobile said that even though it will comply with NAD recommendations, it “disagrees with NAD’s conclusions regarding the challenged advertising.”
The two T-Mobile ads challenged by AT&T were 30-second spots. One features Kansas City Chief’s Quarterback Patrick Mahomes and entertainer Snoop Dogg and the other stars Saturday Night Live cast member Marcello Hernandez.
While T-Mobile does not have to follow the recommendations of the NAD, the latter can refer AT&T‘s claims to the Federal Trade Commission (FTC). The FTC can start an investigation and take action against the companies that try to fool the public by showing deceptive advertisements.
